Nifty moved in a narrow range of 98 points throughout the session and ended below the 15,900 level. The index formed an indecisive candle on the daily chart that resembled a ‘Hanging Man’ pattern. Analysts said the market may see more gains if it succeeds in crossing the immediate resistance level of 15,900.
Here’s how analysts read the market pulse:-
Sumeet Bagadia, Executive Director at Choice Broking, said, the index seems to have resistance at around 15,900. “Nifty50 has continued to trade above the support of 21-day SMA i.e. 15,708, which is adding strength to the counter,” he said.
Rohit Singre, Senior Technical Analyst at LKP Securities, said 15,900 will be a tough resistance level to cross. “Any decisive close above the said level can give a good upward move towards the 16,000-16,100 range. A failure to sustain above the 15,900 level may attract some profit booking towards 15,800-15,700,” he said.
That said, here’s a look at what some of the key indicators are suggesting for Monday’s action:
US shares end at record high
S&P500 ended the week at a record high on Friday, lifted by Nike and several banks, while weaker-than-expected inflation data eased worries about a sudden tapering in stimulus by the Federal Reserve. The Dow Jones Industrial Average rose 0.69 per cent to end at 34,433.84 points, while the S&P 500 gained 0.33 per cent to 4,280.69. The Nasdaq Composite dropped 0.06 per cent, to 14,360.39.
European shares settle below record highs
European shares stayed just below record highs on Friday, with a boost from the financial and materials sectors, while Credit Suisse rose after a Reuters report that it was considering a potential merger with UBS. The pan-European STOXX 600 was 0.1 per cent, ending the week with gains of 1 per cent following sharp swings on concerns of higher inflation hitting real income and leading central banks to raise interest rates sooner than expected.
Tech View: Nifty hurdle seen at 15,900
Nifty50 on Friday formed an indecisive candle on the daily chart that resembled a ‘Hanging Man’ pattern. On the weekly scale, the index formed a bullish candle. Analysts said the index can see good upside on a move above the 15,900 level. They see support at around the 15,700 level. Independent analyst Manish Shah said that the weekly bullish candle overpowered the bearish candle that the index had made in the previous week.
Check out the candlestick formations in the latest trading sessions
ETMarkets.com
F&O: Options signal wider trading range
India VIX fell sharply by 11.47 per cent from 15.09 to 13.36 level. The fear gauge has failed to move above 16-16.50 level in the last three weeks and hovered near its lowest level of the last 17 months. Lower volatility indicates an overall bullish market bias, but a small bounce in VIX can give some volatile cues to the market. Since it is the beginning of a new series, options data lay scattered at different strikes. On the options front, maximum Put OI was seen at 15,500 level followed by 15,000 strike while maximum Call OI was seen at 16,000 level followed by 16,500. Call writing was seen at 16,400 and 16,500 levels, while there was Put writing at 15,800 and then 15,400 levels. Options data suggested a wider trading range between 15,500 and 16,200 levels while an immediate range is seen between 15,700 and 16,000 levels.
Stocks showing bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trade setup on the counters of Vodafone Idea, Tata Motors, HDFC Bank, Usha Martin, Tech Mahindra, Shoppers Stop, Max Financial Services, BPL, Gujarat Apollo Industries, MSTC, SBI Life Insurance, Shriram EPC, HSIL, Gallantt Metal, Geekay Wires, L&T Technology Services, Dhani Services, Nagarjuna Fertilizer, Prakash Pipes, Foseco India, Bajaj Electricals, JK Cement, Mold-Tek Packaging, Magadh Sugar Energy,
, and Tasty Bite.
The MACD is known for signalling trend reversals in traded securities or indices. When the MACD crosses above the signal line, it gives a bullish signal, indicating that the price of the security may see an upward movement and vice versa.
Stocks signalling weakness ahead
The MACD showed bearish signs on the counters of Alok Industries, Future Consumer, Vikas Proppant, Bombay Dyeing, Centrum Capital, Edelweiss Financial Services, Future Enterprises, Network 18 Media, PTC India, United Spirits, Titan Company, Dabur India, Marico, MOIL, GE Power India, Va Tech Wabag, Alankit,
, Jump Networks, Sastasundar Ventures, Zuari Agro Chemicals, Avenue Supermarts, Cyient, Bharat Road Network, Panache Digilife, Arman Financial Services, Dhunseri Investments, Nagreeka Exports, Consolidated Finvest, Adroit Infotech and Pilani Investments. A bearish crossover on the MACD on these counters indicated that they have just begun their downward journey.
Most active stocks in value terms
RIL (Rs 5,380.08 crore), Tata Steel (Rs 2,086.06 crore), Kotak Bank (Rs 1,658.20 crore), Infosys (Rs 1,530.72 crore), Ashok Leyland (Rs 1,306.72 crore), SBI (Rs 1273.24 crore), Apollo Hospital (Rs 1,260.70 crore), Sona BLW Precision Forgings (Rs 1,181.41 crore), SAIL (Rs 1,097.09 crore) and ICICI Bank (Rs 953.57 crore) were among the most active stocks on Dalal Street in value terms. Higher activity on a counter in value terms can help identify the counters with the highest trading turnovers in the day.
Friday’s most active stocks in volume terms
Vodafone Idea (Shares traded: 50.12 crore), Suzlon Energy (Shares traded: 15.93 crore), PNB (Shares traded: 11.10 crore), Ashok Leyland (Shares traded: 10.43 crore), SAIL (Shares traded: 8.41 crore), YES Bank (Shares traded: 6.44 crore), RattanIndia Power (Shares traded: 5.72 crore), Reliance Communication (Shares traded: 5.06 crore), Bank of Baroda (Shares traded: 4.96 crore) and NALCO (Shares traded: 4.95 crore) were among the most traded stocks in the session.
Stocks showing buying interest
Bajaj Finserv, Coforge, ICICI Prudential Life Insurance, Infosys, Oil India,
, Aditya Birla Retail (PP), Apollo Hospital, Navin Fluorine, Thyrocare Technologies, and Godfrey Philips witnessed strong buying interest from market participants as they scaled their fresh 52-week highs on Friday, signalling bullish sentiment.
Stocks seeing selling pressure
Shivalik Bimetal Controls and RIL (PP) witnessed strong selling pressure and hit their 52-week lows, signalling bearish sentiment on these counters.
Sentiment meter favours bulls
Overall, the market breadth remained in favour of the bulls. As many as 300 stocks on the BSE500 index settled the day in the green, while 196 settled the day in the red.
Podcast: What is keeping the upside capped for Dalal Street?
Market is hovering near lifetime highs, but appears to be in a consolidative mode. What is keeping the upside capped? Which Nifty50 stocks should you be bullish on? What are the technical charts suggesting?
